Butane is the lead dragon from the "Dragon Time" cast, as seen in Puppetman. Butane is a likable, yellow dragon, and appears to be best friends with Earl. Rather like Kermit the Frog, Butane is the calm, normal character. Along with Gertha, he's also the only dragon in the pilot episode to actually breathe fire or smoke. Butane acts as a peacemaker amongst his fellow puppets, and his puppeteer Gary uses him in a similar way to address his son Zack, providing a gentle, adult voice to draw his attention before allowing him to relate on his own level with fellow child Candle.

Butane is a Live-Hand Muppet, though he was likely performed by Fred Newman without assistance. Only one arm is generally moving at a time.